AUCKLAND GAS COMPANY.

Auckland Star, Volume XXX, Issue 30, 6 February 1899, Page 2

AUCKLAND GAS COMPANY.

ANNUAL MEETING,

PROFIT POR THE YEAR £25,31S

DIVIDEND OF 7s Od PER SHARE

The thirty-seventh annual meeting of shareholders in the Auckland Gas Company (Limited) was held at noon to-day at the Company's Office, Wynd-ham-street. There was a good attendance of shareholders, Mr T. Buddie presided. The following report of the Directors was read: — .* 'The Directors have the pleasure of reporting a further increase in the consumption of gas, equal to 7 per cent,, which they consider highly satisfactory. The'profit for the year amounts to £25,318 2s fid, which leaves after providing for the dividend at the usual rate a sum of £5,560 17s The Directors recommend the pay- | ment of a Dividend for the past halfyear of 7s 6d per share on the paid-up "shares, 5s 3d per share on the partpaid shares, and an addition of £3,240 4s 2d to the Reserve Fund, making that Fund £20,000. which will leave a sum of £2,620 12s lOd to be carried forward. The call made in March last, together with the sale of 550 shares, realized on account of paid-up capital £7,903 12s 6d. The premium capital not carrying dividend amounted to £7,577 19s 9d. The shares sold by tender averaged £14 12s 9d each. Mr Upton and Mr Ching are the Directors who retire by rotation; they are eligible, and offer themselves fo/re-election. The Auditors also retire in accordance with the Act, and again present themselves for re-ap-poiritment — For the Directors, T. Buddie, Chairman.' STATEMENTS OF ACCOUNTS. The following Statements of Account for the year ending 31st December, 189 S. were read: — Capital Account:—To General Expenditure to 31st December, 1897, £201,078 13/6; to freehold lands, unencumbered, £12,106 1/6; to expenditure during the year ended 31st December, 1898, viz. new buildings and machinery in extension of works, £1071 2/; new and additional mains and services, £8,759 1/10; new and additional meters, £1,962 18/9; additional land, £534 17/.; total, £220,512 14/7 By paid-up capital on 16,dj1 shares, at £5 each, £82,755; by paid-up capital on 13,743 sjhar.es, at £3 10/ each, £48,100 10/; by premium capital, not 'carrying dividend, £72,710 16/3; by balance, £21,946 8/4; total, £220, oi2 14/7. Revenue Account,—To manufacture of Gas—Coals, £16,162 0/6; purification, including £235 8/2 for labour, £502 11/3; salaries of engineer, officers, and clerks at works, £1,639 0/5; wages (carbonizing), £3,812 0/1; repairs and maintenance of works and plant, including £2,272 15/7 for labour, less £105 2/7 received for old material, £3,887 3/1; total, £26,002 15/4. To Distribution of Gas—Repair, maintenance, and renewal of mams and service pipes, including £341 8/* for labour, £531 7/11; salaries and wages of officers, including rental clerks and £1,695 6/8 for labour, £3,329 0/6; repairing and renewals of meters, including £73 9/3. for labour, £354 5/9; repairing and renewals of stoves, including £157,13/3 for labour, £235 0/7; pipes-for gaa»ranges, including labour, £289 6/1; total, £4,739 0/10. To Public Lamps — Labour (£1,038 0/2) and material, £1,398 1/4. To Rents, Rates and TaxesRents payable, £10.1 12/0; rates and taxes, £2,883 19/2; total, £2,985 11/2. To Management — Directors, £450; salaries of secretary, cashier, accountant and clerks, £1,740 4/7; stationery, printing, advertising, and stamps,. £598 14/10; general charges, £752 15/11; company's auditors, £50; total, £3,591 15/4. To law charges, £49 7/4; to bad debts, £176 4/10. Total expenditure, £38,942 16/?. Balance carried to Net Revenue Account, No. 4, £25,318 2/6. Total, £64,260 18/8. By sale of gas, £50,335 2/7; by public lighting under contract (including gas supplied, extinguishing, cleaning, repairing, renewing, etc., lamps in the city and suburbs), £2,708 1/5; by residual products, £9,683 5/4; by rents receivable, £64 17/3; by transfer fees, £12 3/6; by interest, £103 7/6; by gas fittings, gas engines, fitting, fireclaygoods, etc., £1,354 1/1; total receipts, £64,260 18/8. Net Revenue Account, — Amount paid on account of contract for excavations at Freeman's Bay site, £1,744; balance of net profits 31st December, 1898, £38,694.11/9; total, £40,438 11/9. Balance of net profits 31st December, 1897, £33,975 10/9; less dividends for half-year ended 31st December, 1897, and half-year ended 30th June, 189S, £18,855 1/6—£15,120 9/3; balance from Revenue Account, No. 3, £25,318 2/6; total, £40,438 11/9.

Reserve Fund.—To 19 debentures of £100 each (issued under the Public Buildings Act, 1875), £1,960; to cash on deposit, £8,100; to balance employed in the business of the company, £C,759 15/10; total, £16,759 15/10. By. Balance at credit of the fund, £16,759 15/10.

Balance-sheet.—To Reserve Fund per Account No. 5, £16,759 15/10; to Net Revenue Account for balance per Account Np. 4, £38,69411/9; to sundry tradesmen and others, £507 2/2; to deposits by consumers, £1,029 0/4; to dividends unclaimed, £32 13/10; to cash on deposit for calls and accrued interest, £2,012 0/3; Contingent Liability—Balance of contract for exca* vations at Freeman's Bay site, £6,824 17/10; total. £59,035 4/2. By cash at bankers, £9,522 9/4; by 19 debentures of £100 each, £1,900; by cash on fixed deposit, £8,100; by stores in hand: Coal and shale, etc., £11,569 10/1; by accoUnts due to the company, £5,776 6/5; by accrued interest on fixed deposits and debentures, £220 10/; by capital, balance per Account No.' 2, £21,946 8/4; total, £59,035 4/2. THE CHAIRMAN'S, ADDRESS. The Chairman (Mr T. Buddie), in moving the adoption of the report and balance sheet, said the annual statements justified him in congTatulating the shareholders on a very satisfactory state of affairs. He would supply a few facts which would show the progress made by the Company. They now had 128 miles of mains, being an increase of 10i on last year. The total quantity of gas consumed during the year was 221,155,000 feet, which was an increase of 13,250,000 feet There were 7,492 meters, an increase of 603. The Chairman went on to say:—'Cooking by gas has been so far popularised that there are now no less than 2,500 gas ranges in use in Auckland, while the gas engines in operation number 174. The coal carbonized in the manufacture of gas,is represented by 18,105 tons and shale

234 total 18,339 tons. These figures show that the business of the Company is satisfactorily increasing, especially considering that a large number of incandescent burners have taken the place of the old fashioned gas consuming burners, both in public and private lighting, also that- the last winter was an exceedingly mild one, and further that the. early closing movement has made quick progress. The project of an Industrial and Mining Exhibition to be held in Auckland in December and January gave the first opportunity which has presented itself for demonstrating on a large scale the efficiency of the incandescent gas light by means of Welbacb*s burners. And your Directors thought it was an opportunity not to be lost, as they were convinced that gas companies are under a debt of gratitude to the inventors of these excellent burners and mantles, and that the continued success of gas lighting in the face of the advance made in other methods of lighting is largely due to the efficiency and cheapness obtained by use of the Welsbach Patent. When therefore tenders were called by the Exhibition Committee for the lighting of the Exhibition buildings, grounds, and bicycle track, the Company's Engineer prepared plans of a scheme for lighting with these incandescent lamps. This scheme was submitted to the Committee with a tender for the amount for which tbe Company would be prepared to complete the installation and provide the gas for the season of two months. The tender was accepted and the installation effected. Doubtless all of you have been to the Exhibition and have had an opportunity of observing not only the brilliancy, but the beautiful steadiness of the light, and the complete absence of noise, flickering, or failures, and the result has, I venture to say, been to show incontestable the superiority of the incandescent gas lighting to any other known method of lighting for public buildings. In this connection I will with your permission read a short extract from a letter received by last mail from one of your Directors, Professor Brown, who is on a visit to England and the Continent. Professor Brown writes from Berlin and says: 'You will be pleased to hear that the incandescent gas burner is very prominent here, far more so than electricity, even the stations being all lit with it. There are 1 or 2 verj r attractive kinds of burners using gas at a higher'pressure, and giving over 300 candles per mantle. Sugg (Mr Sugg, as doubtless you are aware is a very high authority on gas burners, and himself the inventor of the celebrated Sugg's Patent Burner) is fitting up the new London Station of the Grand Central Railway (an immense building in Baker-street) with these burners, but I have not yet finished enquiring about them.' It is evident from this, as well as from many accounts which are_ given in the journals of the day that in many of the large centres of the world the fact of superiority and suitability of gas lighting is thoroughly recognised. Our Company as you are probably aware is sole agent for the sale of these burners and mantles, for which jfße Australian Incandescent Lighting Company have a monopoly for the colonies, and there are now no less than 3,600 of them fixed and in use in Auckland. We do not pretend to say. that perfection has yet been * reached in fact; there are indications of great improvements being marie upon-the present which will tend to further popularise this method of lighting, and your Directors are fully alive to the importance of taking advantage of every improvement that presents itself, after due trial, feeling that it is their duty and in the true interest of the Company to supply the best possible light at the lowest cost. The public lighting of the city with incandescent burners, to which our late Chairman referred in his address last year, continues, to give great satisfaction, it being the most economical as well ai effective light that can be obtained for street lighting. ■ I would call your attention to the item for repairs.; to buildings and plant, which you will observe is £ 2,000 less than last year, and this has doubtless tended to enhance the, profits. The large amount spent. annually for repairs really means much more than the term 'repairs' implies. They mean the constant reinstatement of such parts of the plant as become worn out or antiquated, and they are paid for out of revenue. By this policy the plant is kept in a constant state of working order, and is not allowed to depreciate.. The increase in consumption of gas has necessitated a large expenditure for new mains. Some of the mains laid in the day of small things were found to be too small to carry the quantity of gas required, and it was found necessary to supplement the supply with larger ones from the holders to Parnell and Karangahape Road, thereby greatly relieving the pressure in the city mains, and at the same time giving an improved pressure in the suburbs. The amount paid by the Compauy for labour during the year amounted to £14,000, a fact which shows that the success of a Company like this is an important factor in the general welfare of th' 6 city, by providing constant employment for so many men, there being 186 on the permanent staff of the Company's employees.

The excavation of the site in Freeman's Bay for the proposed new works is being proceeded with by the contractor, Mr Fallon, who hopes to complete his contract about June next. We shall then be prepared with a site for the erection of new or additional works whenever the. time comes for so doing. When that time may come depends altogether upon the growth of the city and the demand for an increased output of gas, and upon other circumstances which may arise.

In conclusion, I would like to say that it is gratifying that the relations between the Company and its. constituency, the public, are good, and that there is an evident desire on the part of the latter to make use of the advantages offered by the Company, and as the success of a Company must in a large measure depend upon its internal management, I am glad to say that the. officers and employees of the Company manifest a loyal and active .interest in its progress, and they are. deserving of the thanks of shareholders, which I am sure you will cordially give. I have no other remarks to make, further than to express a confident hope that the year we are now beginning will .prove as steadily progressive as the last has been. I have pleasure in moving the adoption of the report and balancesheet as printed.'

Mr Thomas Peacock seconded the adoption of the report and accounts. This was agreed to unanimously. On Mr Peacock's motion Messrs. J. H. Upton and T. Ching were reelected directors of the Company

and those gentlemen, returned thanks for their election. _, ■Messrs. A. W. Thompson and J. X. Buddie were re-elected auditors, at a fee of £25 each, on the motion ot Mr J. MeLaehlan. Mr J. McLachlan, in the course ot some remarks, referred to the desirability of getting 'new blood on the directorate every year, and said it was evidently the intention of the Legislature that there should be yearly changes in the directorates of Companies like this. _ Mr J. H. Upton, in reply, said there was an infusion of 'new blood' hi the Board of Directors periodically, but that it would be a great mistake to have new directors every year,^ for members of the directorate haa to spend much time and trouble in learning the requirements of the business, and when a man had acquired the necessary knowledge he was -very valuable to the shareholders. The Chairman said a good many changes did take place in the directorate, but it would be a great misfortune if the directors 'were to be changed every year. The Rev. F. Larkins proposed a vote of thanks to the directors, officers and staff of the Company. The vote of thanks was unanimously carried, and was responded to by the Chairman.